As you say, 'keep the dot on the target' will work wherever the dot is as long as the aircraft has the performance to fly the resulting profile. The misunderstanding seems to be that this cannot work with a particular attitude, and of course this is true. If the dot is near the top of the windscreen the initial control inputs will put the nose down until the dot coincides with the target, the target will then tend to move upward requiring the nose to be raised to maintain the dot on target. This will continue as long as necessary. In the extreme case the ac would perform a series of loops around the target before impact, and many types would not have the performance to maintain the dot on target.